Anti-Monopoly Regulator Makes Poor Choice in Chasing China Telecom 中国反垄断初试牛刀 选错对象
After a couple of years of a low-key approach and not doing much, China’s anti-monopoly regulator is finally getting to work by investigating China Telecom’s (HKEx: 728; NYSE: CHA) dominance in the country’s broadband market. I’ll admit this is an interesting case, and have to applaud the regulator for following up on complaints by names like China Unicom (HKEx: 762; NYSE: CHU) and China Tietong that China Telecom unfairly uses its dominant position to keep others out of the market. (English article; Chinese article) But frankly speaking, the regulator has chosen the wrong case to test out its powers as enforcer of fair market competition. China Telecom certainly has a dominant position in broadband, drawing on its legacy wired networks to provide services to the companies and consumers, especially in the southern China where it has the most extensive networks. But there are many indications that more competition is coming, and indeed already exists. Unicom itself already has significant fixed-line broadband representation in the northern China, the result of a decade-old split that saw the nation’s previous wired-line phone monopoly split up and its northern networks given to Unicom and the southern ones to China Telecom. Furthermore, China Mobile (HKEx: CHL) is on a current campaign to build extensive wi-fi service, another form of broadband, with plans to build 1 million hot spots in the next 3 years (previous post). China’s current drive to consolidate its cable TV operators should produce yet another major wired broadband player. With all these alternatives in the market, not to mention China Mobile’s 4G network that could launch commercial service as soon as next year, it will be hard for the regulator to determine that China Telecom has a monopoly on broadband service. I do applaud the regulator for taking on this difficult case, but instead it should focus on speeding up approval for YUM Brands’ (NYSE: YUM) pending purchase of hot pot chain Little Sheep (HKEx: 968), announced 5 months ago (previous post), which has no monopolistic implications but has some worried the deal could be vetoed on nationalistic grounds.
Bottom line: China’s anti-monopoly regulator has made a bad choice in chasing China Telecom’s broadband dominance in its first tough case.
中国《反垄断法》出台三年来，相关部委一直低调行事且作为有限，如今终於“初试牛刀”，对主导国内宽带接入市场的中国电信<0728.HK><CHA.N>展开反垄断调查。我承认这很有趣，不得不为监管机构回应中国联通<0762.HK><CHU.N>和中国铁通的抱怨鼓掌。这些电信商称，中国电信不公平利用其宽带市场主导地位，试图排挤其它竞争对手。但坦白地说，监管机构希望推动市场公平竞争，但初试牛刀却选错对象。中国电信凭借已有的有线网络，向各大公司和消费者提供服务，确实在宽带接入市场占主导地位，尤其是在中国电信网络覆盖很广的南方地区。但许多迹象表明，该领域竞争已经展开，并即将激烈化。联通占有中国北方固话宽带较大份额。这是原中国电信十年前南北分拆的结果。此外，中国移动<0941.HK><CHL.N>正在拓展WiFi服务（宽带的另一种形式），计划未来三年在全国增加100万个WiFi热点。中国目前整合有线电视运营商的行动，也将制造另一个有线宽带竞争者，更别提中国移动4G网络最早明年可能实现商用。宽带市场拥有上述替代选择，监管者很难断定，中国电信垄断国内宽带服务。我的确要为监管机构处理这一棘手问题叫好，但他们更应加速百胜集团<YUM.N>收购小肥羊<0968.HK>的审批，这笔交易并无垄断迹象，但一些人担忧，该交易或因民族主义原因而被否决。
一句话：中国监管机构就宽带接入问题，对中国电信进行反垄断调查，但初试牛刀却选错对象。
Related postings 相关文章:
◙ China Mobile Wi-Fi Play Misguided 中移动：百万WiFi热点？
◙ China Telecom Joins Hot Spot Frenzy Wifi热潮兴起 中国电信与中国移动谁将胜出？
◙ YUM and Little Sheep – A Sweet Match If China Approves 美国百胜购小肥羊：甜蜜姻缘还靠中国政府成全
